John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q4 2016 Earnings Presentation
16 slides from John Wiley & Sons's earnings presentation, Jun 14, 2016
Slide 1: Fourth Quarter and Fiscal 2016 Earnings Report
Fourth Quarter and Fiscal 2016 Earnings Report June 14, 2016
Slide 2: About Wiley and Safe Harbor Statement
About Wiley Wiley is a global provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, professional practice and education. Through its Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals, reference w
Slide 3: Fiscal Year Summary
Fiscal Year Summary • Steady revenue and earnings performance at constant currency and excluding transitional (non-cash) impact of shift to time-based journal subscriptions. Continued investments to achieve greater scale in our Solutions businesses and improve operational efficiency across the busin
Slide 4: Fiscal Year Performance Summary
Fiscal Year Performance Summary (millions) FY 2016 FY 2015 Change Change (ex-FX) Revenue $1,727.0 $1,822.4 (5%) (2%) Adjusted Operating Income* $216.7 $266.5 (19%) (15%) Adjusted Operating Margin 12.5% 14.6% Adjusted EPS* $2.70 $3.26 (17%) (13%) • Above includes transitional impact of shift to time-
Slide 5: Fourth Quarter Performance Summary
Fourth Quarter Performance Summary (millions) FY 2016 FY 2015 Change Change (ex-FX) Revenue $434.3 $441.6 (2%) (1%) Adjusted Operating Income* $51.1 $63.0 (19%) (20%) Adjusted Operating Margin 11.8% 14.3% Adjusted EPS* $0.67 $0.81 (17%) (19%) • Above includes transitional impact of shift to time-bas
Slide 6: Research
Research % of (millions) FY 2016 FY 2015 Change (ex-FX) Revenue Journal Subscriptions $611.4 $672.2 63% (6%) Author-Funded Access $25.7 $22.4 3% 21% Licensing, Reprints, Backfiles, and Other $178.5 $188.3 18% 0% Total Journal Revenue $815.6 $882.9 84% (4%) Print Books $90.6 $99.7 9% (6%) Digital Boo
Slide 7: Professional Development
Professional Development (millions) FY 2016 FY 2015 % of Revenue Change (ex-FX) Print Books $192.1 $206.1 48% (4%) Digital Books $47.1 $49.7 12% (3%) Online Test Preparation and Certification $28.2 $22.1 7% 27% Other Knowledge Service Revenue $28.8 $30.1 7% (2%) Total Knowledge Services $296.2 $308.
Slide 8: Education
Education (millions) FY 2016 FY 2015 % of Revenue Change (ex-FX) Print Textbooks $107.6 $144.5 30% (20%) Digital Books $34.5 $34.1 9% 5% Total Books $142.1 $178.6 40% (15%) Custom Material $51.8 $50.7 15% 2% Course Workflow (WileyPLUS) $58.6 $54.2 16% 10% Online Program Management (Deltak) $96.5 $81
Slide 9: Adjusted Shared Services Costs
Adjusted Shared Services Costs (millions spent) FY 2016* FY 2015* Change (ex-FX) Distribution and Operation Services $83.1 $89.0 (3%) Technology and Content Management $257.8 $244.9 8% Finance $49.8 $52.8 (2%) Other Administration $126.8 $115.5 13% Total $517.5 $502.1 6% • Technology spending (exclu
Slide 10: Balance Sheet
Balance Sheet Balance Sheet (millions) As of 4/30/16 As of 4/30/15 Cash and Cash Equivalents $363.8 $457.4 Short Term Debt $0 $100.0 Long Term Debt $605.0 $650.1 Net Debt $241.2 $292.6 Net Debt to adjusted EBITDA (ttm) 0:7 0:8 • Existing revolving credit agreement amended; capacity increased to $1.1
Slide 11: Cash Flow
Cash Flow Cash Flow (millions) FY 2016 FY 2015 • Cash from Operations flat, as Net Income $145.8 $176.9 expected • Free Cash Flow impacted by Cash From Operations $350.0 $355.1 investment in ERP and related Composition Spending ($37.3) ($39.4) systems development; FY16 capex +$25M vs. FY15 Capex ($9
Slide 12: Outlook: Going Forward
Outlook: Going Forward • Our Journals business (~50% of revenue) continues to provide a strong foundation for our long-term success – Benefitting from a top market position, continued expansion in global R&D spend, and growth in global content usage and authorship – Rate of growth still limited by s
Slide 13: Outlook: Going Forward
Outlook: Going Forward • Our Books business will be smaller but improved as we continue to focus our portfolio on high-value digital learning and reference content – Sustained market declines are now evident and our Books businesses are not immune – Managing our portfolio and making the structural i
Slide 14: Outlook: FY17 Operational Performance
Outlook: FY17 Operational Performance Revenue FY17 Expectation Notes Journals* Marginally higher Subscriptions up; smaller backfile sales All three Books businesses down; Online Publishing Down mid single-digits Test Preparation and WileyPLUS up Strong growth in Online Program Solutions Up mid-to-hi
Slide 15: Summary
Summary • Steady revenue and earnings performance at constant currency and excluding transitional (non-cash) impact of shift to time-based journal subscriptions. Continued investments to achieve greater scale in our Solutions businesses, and in our operational efficiency initiatives • FY17 operation
Slide 16: Fourth Quarter and Fiscal 2016 Earnings Report
Fourth Quarter and Fiscal 2016 Earnings Report June 14, 2016